North Cyprus is left with a toilet paper currency and demanding Euros, the US is lifting the arms embargo on the South. Erdogan is having problems paying for the occupation makes it under heavy pressure to leave.

Just like Ukraine and Russia were brother states and look now that US send some dollars to some guys your relations are dead.

Nothing like Ukraine where our brothers are fighting with us and the others were always against us. Russian currency capitalizes Cypriot banks while most of their money is invested in the Russian economy. Russian FDI is what keeps that island afloat as well as loans. We need to get the British and Turks off the island and make it our base.

Just like Ukraine and Russia were brother states and look now that US send some dollars to some guys your relations are dead.

Nothing like Ukraine where our brothers are fighting with us and the others were always against us. Russian currency capitalizes Cypriot banks while most of their money is invested in the Russian economy. Russian FDI is what keeps that island afloat as well as loans. We need to get the British and Turks off the island and make it our base.

That's not going to happen if you let the US do the work. They may remove the turks but they will let the UK base and probably make it a base for themselves to have it as a protection for israel, as a base against Turkey and to lock the black sea if they lose Turkey as an ally.

That's not going to happen if you let the US do the work. They may remove the turks but they will let the UK base and probably make it a base for themselves to have it as a protection for israel, as a base against Turkey and to lock the black sea if they lose Turkey as an ally.

The UK actually wants to close that base due to the budget blackhole. It costs £1 billion a year to maintain a presence there. With reunification talks it would abrogate the treaty for its existence and they would demand them to leave. There is not much to say after that.

To support financial stability and sustain the effective functioning of markets, the following measures have been introduced:

I. Turkish lira liquidity management:

1) In the framework of intraday and overnight standing facilities, the Central Bank will provide all the liquidity the banks need.

2) Discount rates for collaterals against Turkish lira transactions will be revised based on type and maturity, thus providing banks with flexibility in their collateral management. Through this regulation, the discounted value of banks’ current unencumbered collaterals is projected to increase by approximately 3,8 billion Turkish liras.

4) As cited in the Monetary and Exchange Rate Policy Text for 2018, when deemed necessary, in addition to one-week repo auctions, which are the main funding instrument of the Central Bank, traditional repo auctions or deposit selling auctions may be held with maturities no longer than 91 days.

5) For the days with relatively higher funding need, more than one repo auction may be conducted with maturities between 6 and 10 days.

6) To provide flexibility in banks’ collateral management, upon the request of banks, a portion of or the entire amount of the winning bids in one-week repo auctions will be allowed to be used in deposit transactions instead of repo transactions at the Central Bank Interbank Money Market with the same interest rate and maturity.

II. FX liquidity management:

1) Banks will be able to borrow FX deposits in one-month maturity in addition to one-week maturity.

2) The Central Bank will resume its intermediary function at the FX deposit market. Accordingly, through the intermediation of the Central Bank, banks will be able to borrow from and lend to each other at the FX deposit market as per the rules set by the Implementation Instructions on the Foreign Exchange and Banknotes Markets.

3) Banks’ current foreign exchange deposit limits of around 50 billion US dollars may be increased and utilization conditions may be improved if deemed necessary.

4) Banks will continue to purchase foreign banknotes from the Central Bank via foreign exchange transactions within their pre-determined limits at the Foreign Exchange and Banknotes Markets.

The Central Bank will closely monitor the market depth and price formations, and take all necessary measures to maintain financial stability, if deemed necessary.

Lowering the RRR to increase liquidity only lowers the reserves of the banks. It is a short term band-aid that brings about the collapse of the banking system that much sooner. Erdogan is clearly heading for capital controls which will put Turkey on the path of Venezuela.

Erdoğan repeats Putin's recipe from a couple of years ago when devaluation hit Rouble. I expect Lira to go down to eight and eventually stabilise to seven dollars.

Problem is, unlike Russia, Turkey runs deficits, so someone needs to step in and cover those deficits. With current exchange rate this is 10 billions per year.

To put this in perspective, even after government subsidies/funding, Tesla's budget deficit is 4.6 billion/year. So for a price tag of 2 Tesla's you can take Turkey in the backpack .. Sounds like a bargain to me, for SCTO & co

Hannibal Barca wrote:Erdoğan repeats Putin's recipe from a couple of years ago when devaluation hit Rouble. I expect Lira to go down to eight and eventually stabilise to seven dollars.

Problem is, unlike Russia, Turkey runs deficits, so someone needs to step in and cover those deficits. With current exchange rate this is 10 billions per year.

To put this in perspective, even after government subsidies/funding, Tesla's budget deficit is 4.6 billion/year. So for a price tag of 2 Tesla's you can take Turkey in the backpack .. Sounds like a bargain to me, for SCTO & co

Putin didn't lower the reserve ratio, he raised it 350 basis points which is the exact opposite of what Erdogan did. To put this into perspective, Erdogan took out a $400 billion mortgage and his revenue to pay it just got cut in half. Unless that turns around the currency will just continue to decline into toilet paper. There are a number of things he could do but is doing exactly the wrong things.

US don't care about history of the island. Its only about their interest.

The US only thinks in the short term and at the moment they want to hurt Turkey... or more accurately they want to hurt Erdogan.

In the Ukrainian context they wanted to hurt Russia by brining the Ukraine closer to the EU, but that ended up with a civil war and Crimea returned to Russia .

If they had any idea that might happen they probably would not have bothered, but then as this is the root of all the sanctions against Russia they might have decided it was worth it.

The way the west treats Turkey makes me laugh... best buddy and useful ally when they had Jupiter missiles and air force bases with nuclear weapons... yet even now you can see them grooming the Ukraine and Georgia as potential Black Sea replacements for their bases in Turkey.

It is similar to NASA... we want to keep cooperating but are working hard to try to replace the rocket engines we need from you so when we dump you it wont be so hard on us...

When you find your wife is moving funds to an offshore account in her name, do you continue the relationship in the hope that it is nothing...

The reason for Trump going hammer time on Turkey was because he made a deal with Erdogan and he reneged. He wanted Trump to get Israel to release some Turkish partisan and in exchange he would release Brunson. Israel released the one Erdogan wanted but Erdogan only let the pastor go on house arrest. In the eyes of Trump Erdogan double crossed him. This is personal now.

LMFS wrote:And now Lavrov is in Ankara. Any ideas whether they are discussing something of substance in regards of Russian support for current Turkish economic woes?

I think it is only about their currency woes and what we could do to help prop up the lira. They have been going all over the Arab states trying to get them to buy billions worth of their toilet paper currency. It would be a huge mistake if Trump announces something that crashes it even further.

Vladimir79 wrote:The reason for Trump going hammer time on Turkey was because he made a deal with Erdogan and he reneged. He wanted Trump to get Israel to release some Turkish partisan and in exchange he would release Brunson. Israel released the one Erdogan wanted but Erdogan only let the pastor go on house arrest. In the eyes of Trump Erdogan double crossed him. This is personal now.